In order to maximise their time abroad, travellers have been given advice on how to stretch their dollars further. In the first few months of 2023, citizens of the UK spent £12.7 billion on travel abroad, an increase of £5 billion from the previous year.
Travellers would be wise to look at how the travel money market has changed since they last went on vacation, especially given that the holiday boom appears to be here to stay with 15.3 million UK residents expected to travel abroad in the first four months of 2023, up from 9.6 million visits in the same period last year.
The price comparison experts at Quotezone.co.uk have done extensive research on the best ways for Britons to maximise their vacation spending this summer. Holidaymakers can avoid the three percent extra transaction fees associated with paying in foreign currency by applying for a travel credit or debit card. Additionally, there are specific prepaid travel cards that have exchange rates that are locked in, providing travellers with the assurance that their money won’t be impacted by changing exchange rates.
Recent travel card apps let users track changing prices in real time so they can decide what’s a good deal and buy when the price is right.
It’s important to keep in mind that some travel cards require a £5 initial admin fee to send you a physical card you can use at ATMs, but there are other options available that are free, so it’s worth looking around.
Be aware that not all travel cards are free to use abroad, and some charge for cash withdrawals from ATMs. It’s also important to keep in mind that some foreign businesses, like car rental agencies, won’t accept debit or travel cards. Since they typically need a credit card to guarantee a loan or purchase, it might be wise to carry one with you in case of emergencies.
Even though many of us no longer frequently use cash, travelling with some can be helpful when purchasing small trinkets, paying for taxis, or shopping at local markets where card payments are typically not accepted.
Shop around for the best exchange rates online with little to no commission fee. There may not be much of a difference between the exchange rates of some providers, but for large amounts of cash, this could quickly add up. Some providers will charge a commission on travel money cash. Additionally, they will have a wider selection of stranger currencies.
Getting ready for holidays can be stressful, especially now that there are so many options for taking your cash with you, from travel credit cards and prepaid cards to ordering currency online, according to Greg Wilson, founder and CEO of Quotezone.co.uk. According to recent research, holidays are the most popular reason for UK residents to travel abroad*. To save money and unwind in the sun while on vacation, we’ve put together a helpful list.
It’s important to keep in mind that the majority of basic travel insurance plans do not cover cash loss or theft, so travellers who plan to bring a significant amount of cash should speak with their insurance provider and add on any necessary additional coverage.
cards for prepaid travel
Travel cards that are intended for international use must be pre-paid, but the exchange rate is fixed rather than changing as you make purchases as you would with a credit or debit card. It’s important to be aware of where you’ll be spending because some establishments, like car rental agencies, won’t accept prepaid travel cards. These pre-paid cards are a great way to stay within your budget while travelling because they are.
Debit travel cards
There are also travel-related debit cards available without non-sterling transaction fees. Many banks offer these cards, but as it is a debit account, money will need to be added to the card before being able to use it.
Travel credit cards
Specialist credit cards for spending abroad do not add an extra fee for non-sterling payments, which is typically around three percent for your typical credit card used at home.** However, as with any credit card, it’s important to be able to repay the amount back in full every month, or else the exchange rate could change.
Withdrawing foreign currency
When taking out cash at an ATM machine abroad, always select the option to withdraw in the local currency or else you could be charged for a higher exchange rate. The same goes for spending money – if given the chance, choose to spend money in the local currency on card machines.
Source- Travel daily
Link: https://www.traveldailymedia.com/top-5-tips-to-make-your-holiday-fund-go-further/
